Chemring GroupLSE:CHG +0.96%85 Current Ratio is 1.39 as of Apr. 2026, which is 7% below its 10-year median of 1.49. GuruFocus rates LSE:CHG with a GF Score™ of 85/100 and a GF Value™ of £4.32 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 358 Aerospace & Defense companies, Chemring Group ranks worse than 67.6% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Chemring Group's current ratio for the quarter that ended in Apr. 2026 was 1.39.
Chemring Group has a current ratio of 1.39. It generally indicates good short-term financial strength.
The historical rank and industry rank for Chemring Group's Current Ratio or its related term are showing as below:
LSE:CHG'
s Current Ratio Range Over the Past 10 Years
Min: 0.94 Med: 1.49 Max: 2.06
Current: 1.39
During the past 13 years, Chemring Group's highest Current Ratio was 2.06. The lowest was 0.94. And the median was 1.49.
LSE:CHG's Current Ratio is ranked worse than 67.6% of 358
companies
in the Aerospace & Defense industry
Industry Median: 1.92
vs LSE:CHG: 1.39
Chemring Group (LSE:CHG) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Chemring Group Current Ratio Related Terms
Chemring Group Current Ratio Historical Data
* Premium members only.
The historical data trend for Chemring Group's Current Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:CHG vs SPCX, GE, RTX: Current Ratio Comparison
For the Aerospace & Defense subindustry, Chemring Group's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Chemring Group Current Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Chemring Group's Current Ratio distribution charts can be found below:
* The bar in red indicates where Chemring Group's Current Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Chemring Group (LSE:CHG) has a Current Ratio of 1.39 as of Apr. 2026. This is near median its historical median of 1.49. Over the past decade, Chemring Group's Current Ratio has ranged from 0.94 to 2.06. According to the industry distribution chart, Chemring Group ranks #242 out of 358 companies in the Aerospace & Defense industry, placing it in the top 67.6%.
Is Chemring Group's Current Ratio too high?
Chemring Group's current Current Ratio of 1.39 is near median its 10-year median of 1.49. Over the past 10 years, this metric has ranged from a low of 0.94 to a high of 2.06. The Aerospace & Defense industry median Current Ratio is 1.92. Chemring Group's value of 1.39 is 27.6% below this industry median. Based on the distribution chart, Chemring Group ranks #242 out of 358 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Chemring Group has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Chemring Group's Current Ratio compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Chemring Group ranks #242 out of 358 companies for Current Ratio. This places Chemring Group in the lower half of its industry. The industry median Current Ratio is 1.92. Chemring Group's value of 1.39 is 27.6% below this benchmark. Historically, Chemring Group's own Current Ratio has ranged from 0.94 to 2.06 over the past decade. While the company's 10-year median is 1.49 vs. the industry median of 1.92, Chemring Group has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Aerospace & Defense company?
The median Current Ratio among Aerospace & Defense companies is 1.92, based on 358 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Chemring Group's current Current Ratio of 1.39 is 27.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median Current Ratio is 1.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Chemring Group's current Current Ratio is 1.39, which is near median its own 10-year median of 1.49. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Chemring Group stock overvalued right now?
Based on GuruFocus' analysis, Chemring Group (LSE:CHG) is currently considered Significantly Overvalued. The stock's GF Value™ is £4.32, compared to a current price of £5.78 — trading 33.7% above its estimated fair value. The current Current Ratio is 1.39, which is near median its 10-year median of 1.49 and 27.6% below the Aerospace & Defense industry median of 1.92. Chemring Group's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Chemring Group (LSE:CHG), the current Current Ratio is 1.39 as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Chemring Group (LSE:CHG) Overvalued in 2026?
Based on GuruFocus' analysis, Chemring Group stock appears to be overvalued.
The current stock price of £5.78 is trading 33.7% above its estimated GF Value™ of £4.32.
GuruFocus considers Chemring Group to be Significantly Overvalued.
Key valuation signals for LSE:CHG:
Current Ratio: 1.39 (near median its 10-year median of 1.49)
GF Value™: £4.32 vs. price of £5.78 (33.7% above fair value)
Industry Position: 27.6% below the Aerospace & Defense median (#242 of 358)
No single metric tells the full story. See the LSE:CHG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Chemring Group PLC is a defense technology company. The company's operating segment include: i) Countermeasures and Energetics segment: It is engaged in the development and manufacturing of expendable countermeasures for air and sea platforms, cartridge/propellant actuated devices, pyrotechnic devices for satellite launch and deployment, missile components, propellants, separation sub-systems, actuators, and energetic materials, ii) Sensors and Information: it is engaged in the development and manufacturing of electronic countermeasures, chemical and biological threat detection equipment, and explosive hazard detection (EHD) equipment. It generated the majority of the revenue from the Countermeasures and Energetics segment. Geographically, the maximum revenue is generated from the USA.
85GF Score
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